First Time Hard Money Loan

5 Replies

I am trying to secure funds for my first flip.  All of the lenders I have found are requiring a %10 down payment.  Are there any lenders that will lend based entirely on the deal equity and not require a down payment.  Thanks!

It will be extremely unlikely that you find a HML to give you 100% funding on your first deal.

They will all require you to have a down payment and some skin in the game.

You will also need funds for rehab because they typically reimburse you afterwards.

You'll either need to save up or get private money (friends, family, etc) for the down payment.

Otherwise you can always explore creative financing options like seller financed deals, etc.

@Noah Pruett most go to local real estate investing meet-ups or conferences. Also, BiggerPockets is a great resource to find like-minded individuals and private lenders! 

100% financing is tough...even for private lenders, unless there are compensating factors (great track record, proven successes, strong reserves, great credit score...maybe even good job/w2 income (usually not a factor for non-bank investment property lenders, but may be for a private individual)). 

I would like to know more about the particulars of this deal you have going.  If you could please tell me/us what is the total amount to finance?  How long in business? basic information....

You can message me or put the information here.

I do not have a deal yet.  I was trying to get all my ducks in row before I approached a lender.   I know I should approach lenders with a deal as I would have a better chance of approval however I knew with my lack of down payment it may be an issue.  I do have a good job making 75k a year w2 and 640 credit score.  I do have a couple collections from over 3 years ago but no judgement, liens or bankruptcies.  I am thinking my strategy should be to approach a family member to lend me the money for a down payment and then take out a hard money loan and either do a profit share with the family member or 10% interest or something like that.  Any thoughts?